Bitfinex reports that cryptocurrency spot trading activity has significantly decreased this quarter, with volumes down 66% from the peak in January, as traders pull back amid weaker ETF inflows and an uncertain macroeconomic environment.
In a Sunday update on X, the exchange pointed out that this slowdown parallels earlier market cycles, where prolonged periods of low activity often “precede the next leg in the cycle.”
According to data from CoinMarketCap, the 30-day crypto spot volumes have dropped from over $500 billion in early November to approximately $250 billion this week.
Trading activity remained in the $300–$350 billion range during late November and early December, with several sessions dipping towards $200 billion—levels that haven’t been seen for months. This decline followed a brief surge in mid-November when volumes surpassed $550 billion before rapidly decreasing, according to data.
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Bitcoin Approaches Breakout as Key Levels Tighten
Meanwhile, market analysts suggest that the current conditions resemble previous pre-breakout scenarios. In a recent post on X, Michaël van de Poppe highlighted a tightening price structure in Bitcoin (BTC), indicating that major macro events in the upcoming week could trigger increased volatility.
“Bitcoin is maintaining its position above this critical level, but I expect to see volatility surge significantly in the coming days,” the analyst remarked.
He identified key levels at $89,000 and $92,000, arguing that a move above resistance could speed up progress toward $100,000 before 2026, while losing support could lead to a retest of lower ranges.
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Crypto Declines Despite Fed Rate Cut
As previously reported by Cointelegraph, Bitcoin briefly reached $94,330 early in the week, buoyed by Strategy’s $962 million purchase, its largest Bitcoin investment since mid-2025.
However, this momentum quickly waned as traders awaited the final Federal Open Market Committee meeting of the year. The Federal Reserve implemented a widely anticipated 25-basis-point rate cut on Wednesday, providing a temporary boost to the markets before sentiment cooled again. According to CoinEx analyst Jeff Ko, this action led to minimal upside, as it was “already priced in.”
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